The Risk-Taking Channel and Monetary Transmission Mechanisms in Indonesia

This study aims to analyze monetary and macroprudential policies through risk taking banks in Indonesia. The importance of risk-taking channel analysis the transmission mechanism policy is that it a newer route different from bank lending has been previously proposed theory. affects supply credit by bank's decision based on changes behavior dealing with risk. also recognizes impact role characteristics banks, as well macroeconomic conditions such economic growth inflation rates. analytical method used fixed effects panel data period 2012-2019. uses 3 types proxies measure risk, first Z-score measurement method, second ratio number risky assets total third, bad loans assets. results this found significantly In addition main variables, GDP variables control for effect liquidity, size which affect So, can be concluded exists Indonesia’s banking.